Airbus is cutting jobs as it struggles to take advantage of rival Boeing’s woes

Boeing (BA) rival Airbus (AIR) is slashing 2,500 jobs in its Defence and Space division as it continues to struggle to find its footing.

The French aircraft manufacturer announced the cuts Wednesday as part of plans to streamline its structure amid a “continued complex business environment.” The headcount reduction will be gradual, taking place through mid-2026, the company said.

“In recent years, the defence and space sector and, thus, our Division have been impacted by a fast changing and very challenging business context with disrupted supply chains, rapid changes in warfare and increasing cost pressure due to budgetary constraints,” said Airbus Defence and Space chief Mike Schoellhorn in a statement.

“While transformation efforts initiated in 2023 have started bearing fruit, particularly on operational performance and risk management, we are now taking the next steps, not least to adjust to an increasingly difficult space market,” he said.

Despite Boeing’s major slowdown, prompted by the blowout of a door plug on a Boeing 737 Max 9 back in January and subsequent intense regulatory scrutiny, Airbus has had a hard time seizing on the opportunity to widen its lead against its closest rival.

In particular, Airbus has faced its own engine troubles and supply chain difficulties. Last week, Airbus said that it delivered just 50 commercial airliners in September — a sharp slowdown from earlier this summer. That made September the second month in a row and the fourth month this year where Airbus deliveries fell compared to 2023.

Reuters reports that the company would need to deliver 273 aircraft in the fourth quarter to hit its 770-plane forecast. That would require a 10% acceleration from the same period a year before. So far, the company is only up 2%.

While Airbus stock is down 4% year-to-date, it’s faring significantly better than Boeing, whose shares have plunged 40% in 2024 as a result of its mountain of woes.

Airbus is set to report third-quarter earnings on Oct. 30.

— Melvin Backman contributed to this article.